https://www.taxtmi.com/highlights?id=75411 Disallowance of Capital Loss on Sale of Shares - sale of shares due to the amalgamation of certain entities - The AO disallowed the loss, treating it as an artificial loss created on paper. - The ITAT held that the AO unjustifiably disallowed the capital loss. The transactions leading to the loss were legitimate and supported by commercial rationale, including a valid business restructuring and divestment strategy supported by an independent valuation. Therefore, the CIT(A)'s deletion of the disallowance was upheld, dismissing the Revenue's appeal on this issue. en-us Tue, 05 Mar 2024 15:18:51 +0530 Tue, 05 Mar 2024 15:18:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=75411 Disallowance of Capital Loss on Sale of Shares - sale of shares due to the amalgamation of certain entities - The AO disallowed the loss, treating it as an artificial loss created on paper. - The ITAT held that the AO unjustifiably disallowed the capital loss. The transactions leading to the loss were legitimate and supported by commercial rationale, including a valid business restructuring and divestment strategy supported by an independent valuation. Therefore, the CIT(A)'s deletion of the disallowance was upheld, dismissing the Revenue's appeal on this issue. Highlights Income Tax Tue, 05 Mar 2024 15:18:51 +0530 https://www.taxtmi.com/highlights?id=75411